Apple partner Foxconn, a Taiwan-based company, is set to build a new $270 million plant in Vietnam reportedly to augment further its iPad and MacBook production.
Foxconn Technology Group, a Taiwan-based multinational electronics contract manufacturer often referred to as Foxconn, is building a $270 million plant in Vietnam. Reports say the move of Foxconn, a major partner of Apple, might be part of the Cupertino tech giant's plant to increase its MacBook and iPad production facilities outside of China.
Apple Supplier Foxconn to Build $270 Million Plant in Vietnam, Likely for MacBook and iPad https://t.co/dH5ug3cb0d by @hartleycharlton pic.twitter.com/IVcytCpxrV — MacRumors.com (@MacRumors) January 18, 2021
According to reports, Foxconn's new facility is found in the northern part of Bac Giang province in Vietnam. Sources within the Vietnamese government say Foxconn expects its new $270 million plant to produce approximately eight million units of tablets and notebooks, as well as their components, each year. Since Foxconn is an assembly partner of Apple, many presume the new facility is for MacBook and iPad production.
Moving Out Of China
In November last year, reports surfaced about Apple asking Foxconn to move some of its MacBook and iPad production out of China and into Vietnam. Foxconn reportedly claimed that the move is a bid to diversify its production, though many believe it is due to the ongoing US-China trade war. Sources say the conflict is a pressure point for the company, forcing Foxconn to devise ways, such as planning to build a new $270 million facility in Vietnam, to minimize the effect of intercontinental political maneuverings. Many believe the new facility is for iPad and MacBook production.
News outlets report that Fukang Technology, a Foxconn subsidiary, is in charge of the $270 million facility project development in Vietnam. There is no information as regards the project's completion, or as to when it is ready to start its iPad and MacBook production for Apple, though it might do so before the year ends.
Not The First
The move of Foxconn to build a new $270 million production plant in Vietnam, which rumors indicate is for iPad and MacBook production is not the company's first foray in the country. Data shows that so far, the total investment of Apple's production partner in the country has already reached $1.5 billion. The Vietnamese government said that in 2021 alone, it expects Foxconn to raise its investment by about $700 million and hire 10,000 additional local workers.
There are also reports that aside from its plans to build a new $270 million facility in Bac Giang province in Vietnam, Foxconn is also looking into investing an additional $1.3 billion in Thanh Hoa province, which is around 160 kilometers or 99.42 miles south of the capital city of Hanoi. It is not clear, however, if the additional investment will also be to augment its production of iPad and MacBook, or for some other Apple products. News outlets sent emails to Foxconn asking for its comment on the matter but the company is yet to respond to the requests.
